CommScope restructures fibre optic venture with Furukawa

CommScope and Furukawa Electric are to restructure their previously announced joint venture arrangements relating to Lucent Technologies’ fibre optic cable business.

The transaction is expected to give CommScope’s access to key intellectual property and provide it with a strategic partner in optical fibre and fibre-optic cable manufacturing.

The venture is being formed to operate a portion of the optical fibre and fibre optic cable businesses within Lucent’s Optical Fibre Solutions (OFS) group, following the purchase of those businesses from Lucent, which is expected to close this quarter.

Under the new terms, CommScope will issue 10.2 million shares of its common stock to Lucent valued at approximately $203 million, based upon a $19.94 share price, which is the 10-day average closing price for the period ending November 6, 2001.

CommScope will purchase an approximate 18% ownership interest in the fibre optic cable venture, which includes transmission fibre and cable manufacturing capabilities at a 2.9 million square foot facility in Norcross, Georgia, as well as facilities in Germany and Brazil and an interest in a joint venture in Carrollton, Georgia.

CommScope will also purchase an interest-bearing note of the venture for $30 million to finance a portion of the initial working capital needs until permanent financing of the venture is secured.

The proceeds of the stock issuance to Lucent will fund both the acquisition of the interest in the venture and the purchase of the note.

On the web